What are the tax consequences if a family member refinances your mortgage?
bankrate.com ... this article explains what you probably need to know. There seems to be a federal minimum rate (which varies by the amount and term of the loan), which must be charged before it's considered a gift. There may be a way around it, however.
Title to real property is transferred by a deed. The owner must execute a deed that names the family member as the grantee. The grantee is the new owner. If there is a mortgage on the property a transfer may trigger a "due on transfer" clause and the lender can demand full payment of the mortgage. There are many legal consequences that result from transferring title to real property to a family member. The property…
If for you borrow 3000.00 for a down payment from a family member and you fall behind in repayment can they force you out of your home if you still owe 600000 to another lender?
Generally: If you signed a promissory note the family member can sue you and obtain a judgment lien. Once recorded you cannot sell or mortgage the property until the lien is paid. Your family member cannot take your home unless they recorded a mortgage in the land records that reserved the right to foreclose. If they foreclose, they would take the property subject to the mortgage and would need to make the mortgage payments.
No. The bank owns the mortgage and you have no such control over it. Some lenders will allow a family member who inherits property to assume the mortgage but that's their call. You should read through all the documents you signed when you granted that mortgage looking for any language in the mortgage that mentions assumption by heirs. Otherwise, call the bank and ask about its policy.
Quit claiming title to a family member will not avoid foreclosure because the mortgage lien on the property has not been satisfied and the lender has a claim on the property. It will not cause the foreclosure proceedings on the property to cease and the lender will seek a judgment from the civil court.